HTC to trim India portfolio to half in 2017, move out of sub-Rs 10,000 segment

The Taiwanese smartphone maker will also launch its virtual reality headsets in India within the next quarter, at over $950 apiece, after having delayed it by a few months.Gulveen Aulakh | ET Bureau | February 21, 2017, 23:39 IST

HTC Corp is trimming its portfolio to half in 2017 and will move out completely from the sub Rs 10,000 price bracket, as it looks to make a stronger presence in the premium end of the market and gain higher share by value rather than volumes.

The Taiwanese smartphone maker will also launch its virtual reality headsets in India within the next quarter, at over $950 apiece, after having delayed it by a few months.

“Last year we had 15 models, including the Desire 620 which was being sold at Rs 9,990, but this year we will have only 7-8 models, staggered across the year, and only above Rs 10,000,” said Faisal Siddiqui, president for South Asia at HTC Corp told ET.

"The Rs 10,000 and under market has become hyper-competitive and phone is more or less a commodity, More so, our cost structure and target audience dictate that we play in the Rs 10,000 and above segments," he added.

In the Rs 10,000-20,000 segment, which grew the fastest last year, HTC had a 9-10% share by revenue. "We now want to take a 10-12% share of the market above Rs 10,000, where we have less than 5% share,” he added, while launching a new flagship for 2017 – HTC U Ultra priced at Rs 59,990 – besides another model HTC U Play priced at Rs 39,990, on Tuesday.

The company will replace its existing Desire range of smartphones which will be priced between Rs 10,000 and Rs 25,000, while the U range of devices will be priced above Rs 25,000. While the Desire range will be made out of India, through Noida based contract manufacturer GDN, the U range will be made by HTC at home in Taiwan.

“We’re exploring if the U series can be made in India, but as of now, the technology to make it is not available here, therefore it will be made by us,” Siddiqui added.

He also said that while the portfolio was being reduced, the company will not lower production capacity, and would rather expand it depending on demand generated by the new portfolio, led by the flagship launches.

HTC U Ultra and HTC U Play will be available in India from March 6 and mid-March, respectively. The HTC U Ultra has a 5.9-inch screen and comes with artificial intelligence based assistant called HTC Sense Companion. It has U Sonic and Voice recognition, which enables better sound quality even though the model does not have an audio jack. It also comes with BoomSound TM Hi-Fi edition speakers, 16 MP front camera and 12MP rear camera to deliver less blur, faster focus, better photos at night.

HTC U Ultra and U Play comes in with a 64GB memory variant. The HTC U Play with a 5.2-inch screen, with 16MP rear and UltraPixel-enabled front camera.